CBP Offers More Detail on GSP Refunds Processing

CBP will require that importers provide enough information to prove eligibility of some retroactive Generalized System of Preference (GSP) claims, said an agency spokeswoman. President Obama signed a renewal of GSP last month (see 1506290045) and the agency is in the process of developing a guidance for the industry (see 1507100012). "CBP is working on information and guidance to the importing community, which will be issued in the near future regarding the recent renewal of the GSP program by Congress," she said.

While entries that included GSP indicators can be automatically processed by CBP, refund requests for GSP-eligible entries submitted after GSP expired must be submitted by Dec. 28, the agency said. "The request must contain sufficient information to enable CBP to verify the claim," said the spokeswoman. The refunds are generally handled "on an entry-by-entry basis unless the importer has set up another arrangement with the National Finance Center, managed under CBP’s Office of Administration," she said. There also may be circumstances "that would warrant manual intervention along with competing legislative requirements that could" affect the timeline, she said.

Refund claims will likely be filed at the port level, said Susan Kohn Ross, a customs lawyer with Mitchell Silberberg, on the firm's website (here). "As is the norm, those refund claims must be filed at the ports where the original entries were filed," she said. Whether or not the GSP indicators were included in an importer's entries, "importers are advised to carefully review their records, identify each entry on which GSP could have been claimed, and make sure those refunds are timely received."

Importers that seek refunds on entries that didn't claim GSP eligibility may want to provide additional related information "to streamline the refund process as much as possible, she said." Such information could include supplier documentation that supports GSP eligibility, recent analysis to establish the 35 percent value added requirement (labor and materials) is met or materials on "double substantial transformation," said Ross. "For right now, the next step is to figure out which entries are eligible for refunds, and get your paperwork in order," she said. "Then, once CBP issues its guidance document, you will be ready to file your refund claims."